Harper Construction awarded $150.5M for F-35 hangar and apron expansion at MCAS Miramar

Contract Overview

Contract Amount: $150,471,980 ($150.5M)

Contractor: Harper Construction Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-01-24

End Date: 2020-06-26

Contract Duration: 884 days

Daily Burn Rate: $170.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF FIRM-FIXED PRICE, DESIGN BID BUILD, P198&P203 CONSTRUCTION OF F-35 AIRCRAFT MAINTENANCE HANGAR AND FLIGHT LINE APRON EXPANSION, MARINE CORPS AIR STATION MIRAMAR, SAN DIEGO, CALIFORNIA

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92145

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $150.5 million to HARPER CONSTRUCTION COMPANY, INC. for work described as: IGF::OT::IGF FIRM-FIXED PRICE, DESIGN BID BUILD, P198&P203 CONSTRUCTION OF F-35 AIRCRAFT MAINTENANCE HANGAR AND FLIGHT LINE APRON EXPANSION, MARINE CORPS AIR STATION MIRAMAR, SAN DIEGO, CALIFORNIA Key points: 1. Contract awarded for critical infrastructure supporting F-35 operations. 2. Project involves construction of a maintenance hangar and apron expansion. 3. Location at Marine Corps Air Station Miramar, San Diego, California. 4. Firm Fixed Price contract type indicates defined scope and cost. 5. Awarded to Harper Construction Company, Inc. 6. Duration of 884 days suggests a significant construction timeline.

Value Assessment

Rating: fair

The contract value of $150.5 million for a new F-35 maintenance hangar and apron expansion appears within a reasonable range for large-scale military construction projects of this nature. Benchmarking against similar projects for aircraft maintenance facilities, especially those accommodating advanced aircraft like the F-35, would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature suggests that the contractor assumed the majority of the cost risk, which can sometimes lead to higher initial bids but provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a competitive environment for this significant construction project. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie for the award. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition with multiple bidders is beneficial for taxpayers as it drives down prices through market forces, ensuring the government receives competitive pricing for its infrastructure investments.

Public Impact

The primary beneficiaries are the U.S. Marine Corps, enhancing their operational capabilities at MCAS Miramar. The project delivers essential infrastructure for the maintenance and readiness of F-35 aircraft. Geographic impact is concentrated in San Diego, California, supporting a key military installation. Workforce implications include construction jobs and support roles during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price structure.
Construction delays could impact the operational readiness of the F-35 fleet at the base.
Quality control during construction is crucial to ensure the longevity and safety of the facility.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive award.
Award to an established construction company may indicate a lower risk of performance issues.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically for large-scale military infrastructure. The market for military construction is characterized by significant project values, stringent requirements, and often specialized needs related to defense operations. Comparable spending benchmarks would involve analyzing other large hangar and apron construction projects for military aviation facilities, considering factors like aircraft type, size, and location.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, large prime contractors like Harper Construction are often required to meet subcontracting goals for small businesses. The extent to which small businesses will participate in this project as subcontractors will impact the small business ecosystem in the San Diego region. Further analysis of the subcontracting plan would be needed to assess the specific impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions, with potential involvement from the Naval Facilities Engineering Command (NAVFAC). Accountability measures are embedded in the firm fixed-price contract terms, performance specifications, and payment schedules. Transparency is generally maintained through contract award databases and public reporting, though detailed project management oversight specifics are often internal.

Related Government Programs

F-35 Program Support Contracts
Military Airfield Infrastructure Projects
Naval Facilities Construction
Defense Base Realignment and Closure (BRAC) Projects

Risk Flags

Potential for cost growth if unforeseen site conditions are encountered.
Risk of construction delays impacting operational timelines.
Ensuring adherence to stringent quality and safety standards for military aviation facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $150.5 million to HARPER CONSTRUCTION COMPANY, INC.. IGF::OT::IGF FIRM-FIXED PRICE, DESIGN BID BUILD, P198&P203 CONSTRUCTION OF F-35 AIRCRAFT MAINTENANCE HANGAR AND FLIGHT LINE APRON EXPANSION, MARINE CORPS AIR STATION MIRAMAR, SAN DIEGO, CALIFORNIA

Who is the contractor on this award?

The obligated recipient is HARPER CONSTRUCTION COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $150.5 million.

What is the period of performance?

Start: 2018-01-24. End: 2020-06-26.

What is Harper Construction Company, Inc.'s track record with large-scale military construction projects, particularly for aviation facilities?

Harper Construction Company, Inc. has a significant history of undertaking large-scale construction projects, including numerous contracts with the Department of Defense and other federal agencies. Their portfolio often includes military barracks, training facilities, and infrastructure upgrades. While specific details on their experience with F-35 specific hangars would require deeper investigation, their general experience in military construction suggests a capacity to handle complex projects. Reviewing past performance evaluations and any reported issues on previous government contracts would provide a more comprehensive understanding of their reliability and quality of work in similar environments.

How does the $150.5 million cost compare to similar F-35 hangar construction projects awarded by the Department of Defense?

Benchmarking the $150.5 million cost requires comparing it to similar F-35 maintenance hangar and apron expansion projects. Factors such as square footage, specific technological requirements for F-35 maintenance, site conditions, and geographic location significantly influence costs. Generally, F-35 facilities are complex and expensive due to the aircraft's advanced systems and maintenance needs. Without access to a detailed cost breakdown or a database of comparable projects with similar specifications and award dates, a precise comparison is difficult. However, for a project of this scale and complexity, the awarded amount appears to be within the expected range for major military aviation infrastructure.

What are the primary risks associated with this firm fixed-price construction contract, and how are they mitigated?

The primary risks for the government in a firm fixed-price (FFP) contract, even with a reputable contractor, include potential for contractor-driven scope changes if the initial design is incomplete or flawed, and the risk that the contractor may cut corners on quality to maintain profitability if margins are tight. For this project, the FFP structure shifts most cost risk to Harper Construction. Mitigation strategies employed by the government typically involve rigorous design review, detailed specifications, robust quality assurance and inspection protocols throughout the construction process, and clear contract clauses addressing performance standards and remedies for non-compliance. The government's oversight team plays a critical role in monitoring progress and adherence to contract terms.

What is the expected impact of this hangar and apron expansion on the operational readiness and capacity of the F-35 fleet at MCAS Miramar?

The construction of a new F-35 maintenance hangar and apron expansion is directly intended to enhance the operational readiness and capacity of the F-35 fleet stationed at Marine Corps Air Station Miramar. A dedicated, modern maintenance facility allows for more efficient and effective servicing, repair, and upkeep of the aircraft, reducing downtime and improving sortie generation rates. The apron expansion provides necessary parking and operational space for the aircraft. This infrastructure investment is crucial for ensuring the F-35s are mission-capable and can effectively support the Marine Corps' objectives in the region and beyond.

How has spending on military aviation infrastructure, specifically hangars and aprons, trended over the past five years?

Spending on military aviation infrastructure, including hangars and aprons, has generally remained a significant priority for the Department of Defense, driven by the modernization of aircraft fleets and the need to maintain operational readiness. Over the past five years, there has been a consistent allocation of funds towards upgrading and expanding facilities to accommodate advanced platforms like the F-35 and other next-generation aircraft. This trend is influenced by factors such as aircraft procurement cycles, the aging of existing infrastructure, and strategic basing decisions. While specific figures fluctuate annually based on budget appropriations and project pipelines, the overall investment in this category reflects a sustained commitment to supporting air power projection and maintenance capabilities.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247317R3404

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2241 KETTNER BLVD STE 300, SAN DIEGO, CA, 92101

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $150,471,980

Exercised Options: $150,471,980

Current Obligation: $150,471,980

Subaward Activity

Number of Subawards: 1356

Total Subaward Amount: $3,624,014,723

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline